The Klier Hair Group, Germany’s largest hair salon chain, has officially filed for bankruptcy protection, in the hope that the bankruptcy proceedings can save a large part of its existing business. A court in Wolfsburg on Tuesday agreed to open bankruptcy proceedings following a plea from the beleaguered company in September.
Klier, a family company started in 1948, owns brands such as Essanelle and SuperCut, and operates around 1,300 hair salons. employs about 8,500 people across the country.
“Beyond any restructuring that will allow our company to continue operating in the future, our top priority is to maintain as many of our shops and salons as possible – and the jobs connected to each one -,” the company said in a statement on Tuesday. .
Michael Melzer, who took over as CEO in September, thought the company was on a good restructuring trajectory but said, “Unfortunately, we had to cut ties with failed salons and shops for a profit.” Melzer says it is the only way the company can survive while at the same time saving most jobs.
Melzer said it was not clear how many shops had to close since negotiations with landlords were ongoing.
Klier, which generated around € 300 million ($ 361 million) in revenue in 2019, has been under pressure due to sluggish business due to the coronavirus and hopes to deliver a comprehensive restructuring plan by the end of December. The coronavirus pandemic has hit the branches really hard and Klier has been in dire straits since the first lockdown this spring.
A court in the city of Wolfsburg, where the company is headquartered, has now begun reviewing creditors’ claims. Creditors will decide whether or not to accept the Klier Group restructuring plan at a special meeting on February 25, 2021.
js / msh (AFP, dpa)